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Describe how you will ensure adequate liquidity to cover anticipated expenses.

2 Answers

2 votes

Final answer:

To ensure adequate liquidity, create a budget and have a savings account with few months worth income as a financial cushion.

Step-by-step explanation:

To ensure adequate liquidity to cover anticipated expenses, it is important to create and stick to a budget. This will help you track your income and expenses and ensure that you have enough money coming in every month to cover your expenses.

In addition, it is recommended to have a savings account with at least three to six months worth of your monthly income. This can serve as a financial cushion in case of unexpected expenses or situations like temporary unemployment or major repairs.

By following these steps, you can have a better handle on your finances and ensure that you have enough liquidity to cover your anticipated expenses.

User TmTron
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describe how you will ensure adequate liquidity
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